Hurricanes and Housing
As we all exhale a breath of thanks that Hurricane Lane didn’t cause more damage, we are still left wondering what impact the hurricane will have on Hawaii’s economy. With the Big Island and Maui still dealing with fires and floods, Kauai’s North Shore still recovering from a record-breaking downpour, and the residual effects to all islands due to government and business shutdowns (not to mention major media coverage), it remains to be seen as to whether we will experience an even further slowing in the housing market. Further slowing? Yes, that’s right. Over the last several weeks, the slowdown in the real estate market has been palpable. Though statistics, as often seen through a rear-view mirror, may tell a different story, our boots-on-the-ground Realtors know firsthand that, “the times they are a changing.” Open houses are seeing fewer visitors, properties are receiving fewer offers, and price reductions are on the rise. Sellers are perplexed when their homes don’t sell right out of the starting gate, and buyers are sitting on the fence wondering if it is wise to wait to buy.Contact Us Now
What we do know is this – Hawaii properties appreciate over the long run, there are virtually no new building starts, and the cost of borrowing remains relatively low. People will always need a home to live in; with a softening in the market, albeit a slight one, there are new opportunities for trading up and for securing a property at what remains historically low-interest rates. We also know that a property that is well-priced, prepped properly, and marketed aggressively, will sell! Of course, for sellers, it is important to price a property right from the get-go to attract those buyers already in the marketplace. And for buyers, be sure to weigh the cost of waiting for further price reductions with the likelihood of further interest rate increases. As with Hurricane Lane, what was once a category 5 housing market has ebbed, but like Hurricane Lane, it is slow ebbing and one that will be viewed by many as a healthy and much-needed change.
Stay safe Hawaii and as always, if you have any questions about buying a new home (hurricane resistant!) contact us.
Call Us 808-396-2000